Entrepreneurship: Challenges and Opportunities

UNDERSTANDING
ENTREPRENEURSHIP

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1. Different kinds of entrepreneurial ventures and their topologies.........................................1
P2. Comparison of different types of entrepreneurial ventures..................................................2
P3. Influence of Micro and small enterprise on economy of UK...............................................4
P4. Need of small business and start-up's for economic growth.................................................6
TASK 2............................................................................................................................................7
P5. Traits and skills a successful entrepreneur inculcates...........................................................7
P6. Entrepreneurial personality influences due to motivation....................................................8
P7. Background and Past Experience can affect Entrepreneurship. ..........................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Entrepreneur is actually a person who can generate something from nothing. He has a
thinking capacity which is beyond any ones imagination and bring so many innovative ideas
which would benefit the society in many aspects. They are the people who work for themselves
rather than working under some one. They can run a business and ready to take any kind of risks
which will come in their way, this provides them with lot of rewards, fame, money and even
sometimes when the idea does not click or work well in the real scenario then there would be big
setbacks also which an entrepreneur has to be ready for. This report discusses about various
types of entrepreneurs present in the world and their unique topologies. There can be so many
factors which affect entrepreneurship either positively or negatively, those factors are local,
regional, national as well as international factors. Background of the person is also a big reason
which may foster or hinder for the person to become an entrepreneur.
TASK 1
P1. Different kinds of entrepreneurial ventures and their topologies.
Entrepreneurship is basically referred to method which includes designing, implementing
as well as executing those plans which are made by them. They start with some enterprise which
is initially small and then offers many products and services in return of money. Individuals
running such type of firms with unique ideas in their head are called entrepreneurs. According to
research which has been carried out on entrepreneurs it was found that they are people who have
willingness and ability to make, manage and motivate others to open up any venture and take any
kind of risk which may come in future. Usually this concept seems to very encouraging as well
as attractive to see someone opening their own business but at times they have to shut down their
business due to many reasons that might include lack of funds, poor business strategy and bad
economic status. It is not that easy to become an entrepreneur without a proper set up and also
support by other sources, else there should also be a backup plan. There are many types of
entrepreneurial venture which includes the following:
Small business: These are known as private corporation which basically consists of few
members in the company and also whose annual income is so less as compared with any regular
size business. According to the government policies any business which is considered as small is
not accustomed to pay any taxes, as they have some preferential policies for such firms.
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Lifestyles business: This business is set up for meeting personal needs of the people and
maintaining their lifestyles and status in the society. They are not formed to bring any difference
in the world with their brightest ideas but they are developed to earn their living to such an extent
that they can enjoy their life to the fullest. They can be investing small amount or large amount
according to their economic status. This is totally a personal type of entrepreneurship which is
done for individual's wish and enjoyment.
Social enterprise: This type of organisation is made for the public of the country. They
need to apply some strategies to improving the condition of the society and provide amenities
which would help in progress of them. These types of firms are formed for the upliftment of
people. But also at times these firms strive for earning money, thus we can say that this type of
firm can be both profit making as well as non-profit organisation.
Big business: This consist of those ventures or companies which have large capital
investment, large number of employees, large labour force with costly equipment and complex
strategies. These are usually firms which carry out huge investments with general instructions
given to the large work force.
Scalable business: These ventures consists of people which tends to start their enterprise
as a small business by carefully measuring all the risks that may come their way and analysing
them and taking steps in forward direction very carefully. They are not risk taker but they
organise their process in such a way that risk factor reduces to minimum. They are those who
improve the profit margin while sales can be increasing at their own level.
Second stage business: This entrepreneur is the one who is creating their own business
starts with a small start which is called primary stage of business, prior to that when the idea gets
clicked and appreciated by the audience then entrepreneur try to expand their business with large
investment and more workforce then that is considered as second stage business.
P2. Comparison of different types of entrepreneurial ventures.
There are similarities as well as differences between various types of entrepreneurial
firms which needs to be discussed. One thing which is common in all types of business is depend
on basic points which include innovation, new idea and risk-taking factor. All these factors need
to be analysed to become a good entrepreneur and properly execute the business well for long
run. Basically, all individual differs from each other in terms of thoughts, financial status and
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